The Portfolio Holder for Finance & Resources advised that the first stage of the budget process had been the ‘Financial Prospects and Budget Strategy’ report presented to Cabinet in September and this report set out progress made in preparing the 2014/15 budget since then.  All five Advisory Committees had been asked to provide Cabinet with their growth and savings recommendations which were included in the report. Members considered the references received from the Advisory Committees.  He reminded Members that the 4 year savings plan started in 2011/12 and contained savings of £4.2m and in the last ten years, over £10m of savings have been made.  The Financial Prospects report showed a shortfall of £667,000 over the 10 years.  By making the two changes to assumptions contained in the report, and including the growth and savings recommended by the Advisory Committees, a balanced 10-year budget was left.  There was still uncertainty around the Government Support figures as these were not expected until later in December.  Therefore, a further report would be presented to Cabinet in January which would hopefully contain a more complete picture. 

The Chief Finance Officer report that as agreed in September this council is continuing to use the 10-year budget strategy, which was now in its 4th year.  This remained unusual in local government as many local authorities were still only looking at the short term as they saw budgeting for 3, 5 or 10 years ahead as being past their financial cliff edge.  Grant Thornton, the external auditors, were about to publish their Financial Resilience Report on Local Government, this document would include the council’s 10-year budget as a good practice case study.

He reported that the savings item that had caused the most debate was SCIA8, deletion of the Parking Civil Enforcement post. Further information had now been provided to the Chairman and relevant members who were now happy.  The two changes to assumptions since the Financial Prospects report were: the Government would be reducing the Government Support in 2014/15 by a further 1% resulting in a 7.5% reduction from the current year; and interest receipts had also been reviewed taking into account the latest information.

For information he advised that the Government had announced their Autumn Statement that day.  The Chancellor had mentioned that local government would be protected from further cuts, but there were no details on how this would work.  Business Rates increases were to be capped at 2% instead of being linked to RPI, and there were also changes to Business Rate reliefs.  Again there were no further details as to how this would impact Business Rates Retention income.  Also the New Homes Bonus would no longer be top sliced to fund the Local Enterprise Partnership (LEP).

The report currently showed a balanced 10-year budget and this would be updated with the settlement figure and changes to any other assumptions should additional information become available, at the meeting in January 2014

The Chairman of Local Planning and Environment Advisory Committee advised that Kent County Council (KCC) was providing one year transitional relief of about £15,000 on the recycling credits that would help with the loss of the recycling at Sainsburys.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

Resolved:  That the Advisory Committee recommendations and comments be noted.